The Hindu Business Line : Exim Bank to buy 2.5% stake in Bombay Rayon

EXPORT-Import Bank of India (Exim Bank) on Monday said it plans to make its first investment in the equity of a domestic Indian company by buying shares worth Rs 5 crore in Bombay Rayon Fashions Ltd (BRFL).

The bank will subscribe to 10,000 equity shares of Rs 10 each at a premium of Rs 40 per share. Exim Bank will have a stake of about 2.5 per cent in BRFL; post the IPO, for which a date has yet to be fixed.

Mr S. Sridhar, Executive Director of Exim Bank, said that in the post-MFA (Multi Fibre Arrangement) or post-quota scenario the bank felt the need to protect and facilitate the growth of export-oriented small and medium enterprises (SME).

"By investing in equity, we hope to capture the upside by garnering more revenue and also have closer interaction with such companies," he said.

Mr Sridhar also said that the bank would seriously look at a few other SMEs in terms of direct investment. At Rs 4,000 crore, SMEs are 30 per cent of the total number of recipients of debt from Exim Bank.

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